H&M loses money after exiting Russia and costs soar.
The picture shows a file photo of a branch of H&M in a shopping district in Berlin, Germany.
H&M reported Friday a big drop in profits in 2022, with a surprise loss in the fourth quarter as the Swedish fashion retailer exited Russia and faced soaring production costs.
The Swedish fashion retailer on Friday reported a sharp drop in profit for 2022 and an unexpected fourth-quarter loss as H&M exits the Russian market and faces soaring production costs.
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H&M was among a slew of foreign companies that shipped out of Russia last year after Moscow invaded Ukraine and Western nations imposed sweeping sanctions on the country.
H&M was one of many foreign companies to pull out of Russia last year following Moscow's invasion of Ukraine and sweeping Western sanctions against the country.
"Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results," chief executive Helena Helmersson said in a results statement.
"Our decision to wind down our business in the important and profitable Russian market has had a negative impact on our (operating) results," H&M Chief Executive Helena Hemmerson said in a report on business results. Say so.
The withdrawal from Russia and a cost-cutting program cost H&M almost 2.6 billion Swedish kronor in 2022. (AFP)
Exiting the Russian market and a cost-cutting plan will cost H&M nearly SEK 2.6 billion in 2022.
be in the red: idiom, shortfall; debt; deficit.
Example sentence: The store has been in the red for some time. (This store has been in debt for some time.)
ship out: Phrase, (by boat) to leave; send away.
wind down: Phrase, (to) end/stop/close gradually.
Example sentence: The storm was winding down after several days of heavy rain. (The storm was winding down after several days of heavy rain.)